Cost Optimization

IT cost cutting has consequences.

Understand how to maximize business value from your IT investments.

Business Value • Cost and Budget management • Cost Optimization • Vendor Management

Minimize the damage of IT cost cuts

The challenge

  • Capex and Opex growth rates, or even as budgets, will most likely continue to decline in the coming years.
  • Most common quick-win initiatives have been taken already and do not satisfy the company's mandate.
  • Typically, cost-cutting initiatives fail to deliver the promised savings. They also tend to take longer than anticipated.
  • Cost-optimization initiatives often have unintended side-effects, potentially even off-setting the savings and leaving the business dissatisfied.

Our advice


  • IT is an integral part of the business value creation chain. Cost-cutting here means that the entire company can be affected. IT must work with the business in partnership to convey the full implications.
  • Avoid large scale cost-cutting or making all of the cost cuts at once. Do this in a phased approach so that you can avoid or manage the consequences.
  • If a service is delivering the intended value, then cut it completely.

Impact and results 

  • Take a value-based approach to cost-cutting.
  • Reduce your IT spend in such a way as to continue to deliver on the essential services.
  • Always involve the business in cost-cutting exercises.
  • Develop a cost-cutting plan that avoids unintended business interruptions.

The roadmap

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

Get started

Our concise executive brief shows you why you should take a value-based cost initiative in your company. We'll show you our methodology and the ways we can help you in completing this.

Understand your mandate

Determine your approach and then take immediate action.

  • Minimize the Damage of IT Cost Cuts – Phase 1: Understand the Mandate and Take Immediate Action (ppt)
  • Cost-Cutting Plan (ppt)
  • Cost-Cutting Planning Tool (xls)

Select initiatives

Identify all initiatives and then build your roadmap.

  • Minimize the Damage of IT Cost Cuts – Phase 2: Select Cost-Cutting Initiatives (ppt)

Communicate to the business and get approval for your plan.

When you will execute your plan, adopt change management best practices.

  • Minimize the Damage of IT Cost Cuts – Phase 3: Get Approval for Your Cost-Cutting Plan and Adopt Change Management Best Practices (ppt)
  • IT Personnel Engagement Plan (doc)
  • Stakeholder Communication Planning Tool (xls)


Buying Options

Cost Optimization

(Excl. 21% tax)
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